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On rational behavior in multi-attribute riskless choice

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  • Korhonen, Pekka J.
  • Wallenius, Jyrki
  • Genc, Tolga
  • Xu, Peng

Abstract

We theoretically compare and contrast two commonly used types of choice strategies in a riskless, multi-attribute setting: (1) the win-win (or Pareto improving) strategy, and (2) the tradeoff strategy. Both strategies can be used and are used in Multiple Criteria Decision Making theory and practice. In the win-win strategy, consumers (or decision-makers) consider, which goods they want to add to their basket. In the tradeoff strategy consumers make pairwise choices between different (efficient) baskets, where they have to give up in some goods to gain in other goods.

Suggested Citation

  • Korhonen, Pekka J. & Wallenius, Jyrki & Genc, Tolga & Xu, Peng, 2021. "On rational behavior in multi-attribute riskless choice," European Journal of Operational Research, Elsevier, vol. 288(1), pages 331-342.
    • Handle: RePEc:eee:ejores:v:288:y:2021:i:1:p:331-342
    DOI: 10.1016/j.ejor.2020.05.056
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    References listed on IDEAS

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